In a statement released on May 8, 2026, the FKE Management Board said it was concerned about developments in the labour sector after the President announced a general wage increase.
The employers’ body said labour matters should be addressed through social dialogue involving employers, workers, and the government.
FKE Defends Its Mandate and Urges Dialogue on Wage Policy
FKE maintained that it speaks on behalf of employers and has always represented their interests, working with trade unions and the government to promote “stable labour relations, sound labour practices, and sustainable business growth”.
The federation said it has a legal duty to protect employers’ interests while also supporting enterprise sustainability and job creation.
“The Federation of Kenya Employers has the right and is obligated to exercise her constitutional and statutory mandate of safeguarding employers’ interest and enterprise sustainability in line with the International Labour standards and Kenya Labour Laws,” the statement said.
The employers’ body furher warned that attacks on the federation and its leadership undermine meaningful social dialogue.
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It urged all parties to respect labour institutions such as the National Labour Board and Wage Councils, which it said are the legally recognised forums for discussing wage adjustments and labour law changes.
FKE also decried the high cost of doing business in Kenya, saying increased taxes, regulatory requirements, and operating costs are putting pressure on businesses across sectors.
The federation said employers remain open to dialogue but stressed that wage decisions must balance workers’ welfare with economic realities to protect jobs and business stability.
The federation said it will continue working with trade unions and the government to find long‑term solutions that support workers, businesses, and the wider economy.
COTU Pushes Back Against FKE Over 12% Wage Increase Proposal
The Central Organization of Trade Unions (COTU) had criticized the Federation of Kenya Employers (FKE) over its position on the 12% general wage increase announced by President Ruto, deepening the debate on how the pay rise should be implemented.
COTU Secretary General Francis Atwoli said on May 5 that FKE’s suggestion to apply the increase only to minimum wages misrepresents the government’s directive and fails to address the pressure workers face from the rising cost of living.
He insisted that the wage increase announced by the President was intended to be a broad, across‑the‑board adjustment for workers.
Atwoli said the planned 12% pay rise is expected to be formalized through a gazette notice by the Ministry of Labour, which would make it legally binding and enforceable.
He emphasized that once gazetted, the adjustment would apply as directed and could not be limited to specific wage categories.
“And you can go back to the clip, the president said this was a general wage increase. Once it is gazetted, it automatically becomes law and enforceable,” Atwoli said.
The COTU chief also accused FKE of routinely slowing down or resisting the implementation of wage increases, arguing that similar positions taken in the past had delayed benefits meant for workers. He dismissed the employers’ statements on the matter and urged Kenyans to rely on the official government process guiding the wage adjustment.
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Ruto’s Announcement of 12% General Wage Increase for Kenyan Workers
On May 1, 2026, President William Ruto announced a minimum wage increase for Kenyan workers.
Speaking while presiding over the 60th Labor Day celebrations at Chavakali Boys High School in Vihiga County on Friday, May 1, Ruto announced a 12 percent increase in general wages and a 15 percent increase for agricultural workers.
“In recognition of the sacrifice, resilience, and immense contribution of our workers to the growth and stability of our economy, I am pleased to announce a 12 percent increase in general wages and a 15 percent increase in agricultural wages to all Kenyan workers,” President Ruto announced.
The increase came after Francis Atwoli, the Secretary General of the Central Organization of Trade Unions (COTU), urged the Head of State to raise wages by up to 23 percent
Atwoli referenced previous administrations, noting that former President Mwai Kibaki granted wage increases of 22%, 18%, and 14%, a move he said supported economic stability, and expressed confidence that the current administration could go even further.
